Indonesia bans palm oil exports The move is expected to push up food inflation around the world in the wake of the Russia-Ukraine war.
Palm oil is the most widely used vegetable oil in the world. Indonesia produces the most palm oil in the world. They supply half of the supply in the world market. This oil is used in everything from cakes to cosmetics. As a result, export bans could push up the price of processed foods worldwide. To deal with this situation, the countries concerned will be forced to choose either to use vegetable oil in their diet or to use biofuels.
In a video message on Friday, Indonesian President Joko Widodo said he would ensure the availability of food in his country. He took the initiative in the wake of record worldwide food inflation in the wake of the Russia-Ukraine war. “I will monitor and evaluate the implementation of this initiative to ensure adequate supply of cooking oil at affordable prices in the domestic market,” he said.
Atul Chartuvedi, president of the Solvent Extractors Association of India, a trade body, said the country’s decision would hurt top buyers in India and consumers worldwide. This move is unfortunate and unexpected.
Alternative vegetable oil soybean prices have risen since Indonesia’s announcement, effective April 27. Soybean is the second most widely used vegetable oil after palm oil.
Several food manufacturers, including Procter & Gamble, a home-grown company, are major buyers of palm oil. According to the website of Orlea cookie maker Mandalay’s International Inc. MDLZ, 0.5% of the world’s palm oil is used in the manufacture of these products.
Producers in Malaysia, the world’s second-largest exporter of palm oil, say the Corona epidemic has caused a labor crisis. As a result, their production has decreased. And this deficit is less likely to feed.
Since 2016, Indonesia has stopped approving new palm oil plantations. Allegedly, these gardens have been deforested and the habitats of various wild animals, including orangutans, have been destroyed.